Vietnam Manufacturing: Key Legal & Regulatory Updates (2025–2026)

Vietnam Manufacturing: Key Legal & Regulatory Updates (2025–2026)

Description

Vietnam’s manufacturing sector is entering a new phase of regulatory transformation, with significant updates across investment, taxation, labor, environment, and trade policies. These reforms aim to streamline administrative procedures, attract high-quality FDI, and strengthen Vietnam’s competitiveness within global supply chains.

Details

Vietnam’s manufacturing industry continues its strong expansion, driven by a series of important legal and regulatory reforms introduced between 2025 and 2026. These changes are reshaping the investment environment for both domestic manufacturers and foreign investors.

🏭 Investment & Licensing
 

Amended Investment Law (effective Mar 1, 2026)
▪ Foreign investors can obtain an Enterprise Registration Certificate (ERC) before the Investment Registration Certificate (IRC), significantly reducing project setup timelines.

Decree 96/2026/ND-CP
▪ Introduces fast-track approval procedures for projects located in industrial parks, high-tech zones, and free trade zones, improving investment efficiency and regulatory transparency.

🌱 Environmental Regulations
 

Decree 153/2024/ND-CP (effective Jan 5, 2025)
▪ Applies environmental protection fees on industrial air emissions, increasing compliance requirements for manufacturers.

Decision 482/QD-TTg (Mar 2026)
▪ Temporarily reduces Environmental Protection Tax (EPT) on fuel to 0% until June 30, 2026, helping reduce production costs.

🌍 Global Minimum Tax
 

Decree 236/2025/ND-CP (effective Oct 15, 2025)
▪ Introduces a 15% global minimum Corporate Income Tax (CIT) for multinational corporations with consolidated global revenue of at least €750 million, aligning Vietnam with OECD global tax standards.

💰 Tax Policies
 

Amended Corporate Income Tax Law (effective Oct 1, 2025)
▪ The 10% preferential CIT rate for 15 years is now restricted to high-tech, R&D, innovation, and green projects.

Decree 174/2025/ND-CP
▪ Extends the reduced VAT rate of 8% until Dec 31, 2026, supporting domestic consumption and industrial recovery.

Amended Personal Income Tax Law (effective Jan 1, 2026)
▪ Increases personal deduction to VND 15.5 million/month and dependent deduction to VND 6.2 million/month.

👷 Labor
 

Decree 293/2025/ND-CP (effective Jan 1, 2026)
▪ Raises regional minimum wages by 7.2%, directly impacting labor costs in manufacturing sectors.

🚢 Customs & Trade
 

Circular 121/2025/TT-BTC (effective Feb 1, 2026)
▪ Implements digital customs procedures via VNeID, introduces a “Release First, Value Later” mechanism for low-risk shipments, and strengthens post-clearance audits.

💻 Technology Incentives
 

Digital Technology Industry Law 71/2025/QH15 (effective Jan 1, 2026)
▪ Offers a 2-year corporate income tax exemption and a 50% reduction for the following 4 years for eligible AI, software, semiconductor, and digital technology enterprises.

📍 Land & Social Insurance
 

Resolution 254/2025 (effective Jan 1, 2026)
▪ Clarifies industrial land allocation and leasing procedures, improving transparency in industrial real estate development.

Social Insurance Law (effective Jul 1, 2025)
▪ Expands compulsory coverage and increases employer contribution obligations.

🔍 Key Takeaway

These reforms highlight Vietnam’s continued efforts to enhance its investment environment—by simplifying administrative procedures, promoting sustainability, attracting high-tech industries, and aligning with global tax and trade frameworks.

For manufacturers and investors, 2025–2026 represents a strategic window to reassess expansion plans in Vietnam.

Long-Term Outlook

With a planned infrastructure investment of approximately USD 123 billion by 2050, Vietnam is steadily positioning itself as one of Southeast Asia’s most competitive manufacturing and logistics hubs.

For industrial and logistics investors seeking long-term opportunities, this is a critical timing window—before infrastructure completion drives further increases in industrial land and warehouse rental costs.

Looking for Industrial Land, Factories, or Warehouses in Vietnam?

SEE the SPACE provides comprehensive industrial real estate solutions across Vietnam, supporting businesses in sourcing industrial land, ready-built factories, ready-built warehouses, and logistics facilities tailored to operational and expansion needs.

Contact SEE the SPACE today to explore leasing and investment opportunities in key industrial zones across Northern Vietnam.

📞 Hotline: 0768 999 647
📧 Email: leasing@seethespace.vn